It has been a while since i did any deep research into a stock, probably not since WFE, and prior to that, RLC. For one, i havent had the desire, but mainly because i havent had a decent target....that is until recent developments for EMP. Basically a 3M MC O&G spec that has been beaten up over the years. Its jewel is the Judith project, a gas resource in the Bass Strait. Constrained by low cash and litigation, it hasnt been able to make any value adding work to the project, until now.
It is quickly becoming plain to see that it has a decent gas resource, right in the middle of a long established field, with current players beginning to worry about security of supply. In a nutshell, the plan is to win a partner, firstly to drill an appraisal well that will also be exploratory in nature, by investigating the sands below the existing resource. It has all the ingredients of a spec punt, that is....low MC, exploration upside, development upside in an already established region.
So, EMP has had legal issues over the years, it seemed like all was over, and Carl Dumbrell recently announced action under section 249ca, to finally reset the board, ready for its next move. This involved mainly moving Phil McNamara up the rungs, and removing Vaz Hovanessian, thereby tightening the management regime with those who have worked on the project, and have skin in the game. Not an entirely pleasant move, but a much needed one.
All pretty straightforward stuff, and i was keen to take the punt, especially after the AGM, where management put forward a very clear, concise presentation on the project, as well as discussing the regional issues and future scenarios regarding gas supply, and future prospects.
However, following Carls move.........and here is when it gets interesting, and pricked my interest in a corporate situation (woo hoo!)........Vaz decided to launch a guerrilla style hijacking, removed Carl as secretary (he is NED currently, as well), then, appointing himself as chairman, and secretary, whilst also dusting off a couple of new directors, from, presumably..."Directors/R/Us". Surely, as i see it, this move is totally illegal, as well as being totally incredible behaviour as a retaliatory move.
A totally bizarre action, given the situation EMP is currently in, that is, on the cusp of regaining credibility, and in view of potential farm-in deals.
I wont go into all the details and nitty gritty of my research, its all available, and there is plenty on the relevant thread to build the story.
Finally, a stock, worth getting my teeth into.....while this legal action is a drawback, it also has the potential to set the stock free upon a proper resolution and appears to be aligning itself with all my criteria for a high conviction play for next year. While i do hold, i'm certainly not fully immersed yet, preferring to wait out the current action, and hopefully get in on any CR, which the company will need, and, will not doubt be the starting point in an upward move.
As for current price action, there could be a number of scenarios in the coming few weeks......those nervous holders may stack the sell at .003, or, if desperate enough, sell into the 2's at a loss. On the flipside, we could see supportive holders add to their positions and wipe the .003's in order to acquire more votes, though i feel Carl would already have the numbers to counter the skullduggery of Vaz. Vaz may try a lowball raise to mates, though i dont believe he has the support of enough folk willing to tip money in, and Vaz himself would be unlikely to add to his position. Carl, however, has backing, though i would be surprised if he would try a similar move.....wouldnt need to, and, is quite clear he doesnt want EMP to do any substantial capital raising at low prices
Again, i am beginning to get quite excited at the situation here, though i would urge anyone who is interested, to do the homework and consider the risks. I'm not one to "call" or "tip" stocks, simply put them out there , but if the STT thread follows through with calling for picks for 2019, this one will be my nomination
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